Print Article
  BookMark Article

Author Login    Author Login

Existing members will have to use the lost password facility to get new username and new password

Welcome Guest! Please login or create an account.



If you do not have an account yet, you can register ( Here ), or you may retrieve a lost user/pass ( Here ).

Navigation    Navigation

   10 newest articles RSS

Author Highlights    Featured Author

Mikey Derik
Sunset Park

"I mainly write for WaysToLowerBloodPressure. I made a passion from writing and will continue..."

View My Bio & Articles

Denmark Leo

"ClassicsAds is a Free Classifieds Portal, you can post ads with images and video and get..."

View My Bio & Articles

silex sol
ambala cantt

" "

View My Bio & Articles

Other Websites    Websites of Interest

FTC Cracks Down On Debt Settlement Companies

Author : Stuart Lieberman

Countless Americans struggling with credit card debt have been seduced by the slick advertisements for debt settlement companies for years. Now, new rules instituted by the Federal Trade Commission next month will help to curb the predatory and unscrupulous elements of the industry, according to A New Horizon Credit Counseling Services, a nonprofit credit counseling agency.

Some debt settlement companies have come under fire for taking large upfront fees, doing little and refusing to make refunds to consumers. The new Telemarketing Sales Rule implemented by the FTC will make these fees a relic of the past. Debt settlement companies will now be barred from charging advance fees until they successfully renegotiate a client’s debt balance. Debt settlement companies will also be required to give consumers more detailed disclosures of the potential negative side effects of debt settlement.

Stephen Marcus, president of A New Horizon Credit Counseling, warns that consumers should be especially wary if they decide to enroll with a debt settlement company in the immediate future. “There are many legitimate debt settlement companies out there that have never charged upfront fees,” said Marcus, “but in these coming weeks, I suspect that the unscrupulous companies will attempt to charge consumers outrageous fees before the FTC begins its enforcement.” According to Mr. Marcus, many clients have turned to legitimate credit counseling organizations like A New Horizon after being swindled by dishonest companies.

Industry experts recognize that both debt settlement and debt consolidation programs can help consumers, but urge those considering such programs to research the companies before committing. Above all, say experts, consumers should choose organizations with a long history of providing reputable service, and absolutely avoid any company that requires a substantial upfront fee.

The new disclosure requirements will take effect on September 27 and the ban on upfront fees will begin on October 27.

Author's Resource Box

Been in Debt Consolidation business for over 14 yrs writing articles and information for several Debt Consolidationsites.

Article Source:

Tags:   1

Author RSS Feed   Author RSS Feed     Category RSS Feed   Category RSS Feed


  Rate This Article
Badly Written Offensive Content Spam
Bad Author Links Mis-spellings Bad Formatting
Bad Author Photo Good Article!




Submitted : 2010-10-19    Word Count : 330    Times Viewed: 488